Godwin Tsa, Abuja
Two directors of the Process and Industrial Development Limited (P&ID), an Irish engineering company, have been convicted of charges bordering on economic sabotage and money laundering.
Following their plea, the Abuja division of the Federal High Court issued an order forfeiting the assets belonging to P&ID incorporated (of Virgin Island) and its Nigerian affiliate, P&ID Nigeria Limited.
They had pleaded guilty to the charges levelled against them by the Nigerian government.
The court equally issued an order winding up the activities of the two companies in Nigeria. This comes as they were found guilty of fraud and tax evasion in respect of the contract leading to the controversial judgment of a British court mandating the firm to seize about $9.6 billion worth of Nigerian assets.
With the conviction, the Federal Government may now ask the Appeal Court in the United Kingdom to set aside the $9.6 billion judgment against Nigeria in the botched gas processing agreement.
The order of Justice Inyang Ekwo, came after two representatives of P&ID pleaded guilty to all the 11-count before the Abuja division of the Federal High Court and were consequently convicted by the court.
The Economic and Financial Crimes Commission (EFCC), yesterday, arraigned the firm before the High Court.
While P&ID Limited, Virgin Island was represented by its Commercial Director, Mohammad Kuchazi; P&ID Nigeria Limited was represented by Adamu Usman, who is also a lawyer.
During the court proceedings, Kuchazi was represented by his lawyer, Dandison Akurunwua, while Usman represented himself.
The two, were among other things, accused of fraudulently claiming to have acquired land from the Cross River State Government in 2010 for the gas supply project agreement which led to the $9.6 billionn judgment.
After they pleaded guilty to the 11-count, an EFCC investigator, Usman Babangida, was called to the witness box for review of facts which was not opposed by the defence.
In the course of the exercise, the Investigator tendered some documents relating to the controversial 2010 gas supply contract, and EFCC’s investigation activities were tendered and admitted by the judge as exhibits without objection from the defence.
The judge then went on to pronounce the two firms represented by the two men guilty.
Although, the prosecution counsel, Sanga had commended the defendants for their forthrightness and candour, he submitted that under section 19 (2) of the Money Laundering Prohibition Act and section 10(2) of the Advanced Fee Fraud, where a body is convicted under these laws, the proper order is for the winding up its affairs and forfeiture of its assets and property to the Federal government.
Earlier in their allocutus (plea for mercy), counsel for P&ID, Dandison Akurunwua, urged the judge to consider “the forthrightness and candour” of his client by pleading guilty and not wasting the time of the court in the trial.
In his judgment, Justice Ekwo held: “I have reviewed the evidence tendered by the prosecution and the exhibits supported by PW1 A, B, C tendered before this court and I have taken note of the plea of guilt by the defendants.”
The Minister of Justice and Attorney General of the Federation, Abubakar Malami, has hailed the judgment.
“The implication of today’s conviction is that Nigeria has a judicial proof of fraud and corruption as a foundation of the relationship that gave rise to a purported liability in the arbitral award.
“A liability that is rooted in fraud and corruption can not stand judicial enforceablity Nigeria now has a cogent ground for setting aside the liability. Where nigeria is expected to review its strategy in view of unfolding developments as it relates to conviction of some of the suspects that have admitted fraud and corrupt practices in the transaction that gave rise to purported award. Nigeria is meeting with is legal consortium early next week in UK in preparation for the case listed for 26th September,” he said.
However, the company accused the Federal Government of detaining and coercing false testimonies from its associates to implicate and label it a fraud.
In a statement, yesterday, P&ID alleged that the government was using the Economic and Financial Crimes Commission (EFCC) to carry out targeted campaign of detentions aimed at individuals associated with P&ID.
“The detentions are illegal, and appear to be aimed at coercing false testimony to support Nigeria’s claim that P&ID’s award is a fraud.
“Nigeria’s Attorney General Abubakar Malami has acknowledged that his aim is to provoke global opposition against P&ID, by undertaking these attacks. P&ID calls on the government of Nigeria to accept its responsibilities under the law and to cease the unlawful detentions.”
The company had claimed it entered a contract to build a gas processing plant in Calabar, Cross River state, with the Nigerian government in 2010, but that the deal collapsed because the government did not fulfil its own end of the bargain. It then sued Nigeria at the British court, and secured a $6.6 billion judgment, the sum of which has accumulated to $9.6 billion, in its favour.